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Friday, June 13, 2008

Domestic Relations Law 177, which became effective on October 27, 2007, provides in subdivision 1, that prior to accepting and entering as a judgment any stipulated agreement between the parties in an action for a divorce, the judge is required to ensure that the agreement contains a provision relating to the health care coverage of each individual. The agreement must either provide for the future coverage of the individual, or state that the individual is aware that he or she will no longer be covered by his or her spouse's health insurance plan. Every agreement accepted by the court must contain the following statement, signed by each party, to ensure that the provisions of subdivision 1 are adhered to:

I, (spouse), fully understand that upon the entrance of this divorce agreement, I may no longer be allowed to receive health coverage under my former spouse's health insurance plan. I may be entitled to purchase health insurance on my own through a COBRA option, if available, other-wise I may be required to secure my own health insurance. ___________________________ ____________(Spouse's signature) (Date)

The statute does not apply to any other types of matrimonial actions. It is confusing and raises many issues. It appears to apply only to “stipulated agreements”, presumably referring to agreements made during the course of an action for a divorce, and agreements and stipulations executed before its effective date. A literal reading of the statute requires every agreement that is submitted to a judge for incorporation into a judgment of divorce to contain this statement, even if either or both spouses do not have a health insurance plan.

Legislation has been introduced in the Assembly to amend the statute but until it has been signed into law, the following provision is suggested for all agreements and stipulations:

ARTICLE __FUTURE HEALTH INSURANCE COVERAGE

1. The parties have been advised that New York Domestic Relations Law 177, subdivision 1 (“the statute”) provides that prior to accepting and entering as a judgment any stipulated agreement between the parties in an action for a divorce, the judge is required to ensure that the agreement contains a provision relating to the health care coverage of each individual. The agreement must either provide for the future coverage of the individual, or state that the individual is aware that he or she will no longer be covered by his or her spouse's health insurance plan.

2. The parties have been advised that New York Domestic Relations Law 177, subdivision 1 provides that every agreement accepted by the court must contain the following statement, signed by each party, to ensure that the provisions of subdivision 1 are adhered to:

" I, (spouse), fully understand that upon the entrance of this divorce agreement, I may no longer be allowed to receive health coverage under my former spouse's health insurance plan. I may be entitled to purchase health insurance on my own through a COBRA option, if available, other-wise I may be required to secure my own health insurance.

____________________________ ____________(Spouse's signature) (Date)

3. The parties have been further advised that a literal reading of the statute requires every agreement that is submitted to a judge for incorporation into a judgment of divorce to contain this statement, even if either or both spouses do not have a health insurance plan.

4. In order to comply with the provisions of the statute the husband and wife represent to each other and state as follows:

c). This agreement (does) (does not) provide for the future health insurance coverage of the husband.

d). In order to comply with the provisions of Domestic Relations Law 177, subdivision 1 the husband states:

" I, ___________________, fully understand that upon the entrance of this divorce agreement, I may no longer be allowed to receive health coverage under my former spouse's health insurance plan. I may be entitled to purchase health insurance on my own through a COBRA option, if available, other-wise I may be required to secure my own health insurance.____________________________ ____________(Spouse’s Signature) (Date)

g). This agreement (does) (does not) provide for the future health insurance coverage of the wife.

h). In order to comply with the provisions of Domestic Relations Law 177, subdivision 1 the wife states:

" I, ___________________, fully understand that upon the entrance of this divorce agreement, I may no longer be allowed to receive health coverage under my former spouse's health insurance plan. I may be entitled to purchase health insurance on my own through a COBRA option, if available, other-wise I may be required to secure my own health insurance.____________________________ ____________(Spouse’s Signature) (Date)

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About Joel R. Brandes

This blog is published by Joel R. Brandes Consulting Services, Inc.
Joel R. Brandes is the author of the "Law and the Family New York 2d", and "Law and the Family New York Forms" (Thomson-West). He is not a lawyer.
Joel R. Brandes Consulting Services, Inc. is not a law firm, or a lawyer and does not give legal advice.
Notice: The information on this site pertains to New York and Federal law only and is offered as a public service. It is not intended to give legal advice about a specific legal problem, nor does it create an attorney-client relationship. Due to the importance of the individual facts of every case, the generalizations we make may not necessarily be applicable to any particular case. Changes in the law could at any time make parts of this web site obsolete. This information is provided with the understanding that if legal advice is required the services of a competent attorney should be sought.

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This Blog is written by Joel R. Brandes, the author of Law and the Family New York, Second Edition Revised, and Law and the Family New York Forms (Thomson-West), Bari Brandes Corbin, of the New York Bar, and co-author of Law and the Family New York, Second Edition, Revised, Volumes 5 & 6 (Thomson-West), and Evan B. Brandes, of the New York and Massachusetts Bars, and a Solicitor in New South Wales, Australia. The authors write the annual supplements to Law and the Family New York, Second Edition Revised, and Law and the Family New York Forms.